Tesla TSLA shares rose more than 1.5% in premarket trading Friday after the electric vehicle maker reported a 5% year-over-year increase in sales of China-made vehicles in September.
The stock appeared poised to open higher after falling in each of the previous two sessions.
The latest sales figures offered another sign of improving demand for Tesla vehicles.
Tesla recovering
Tesla’s deliveries of its China-made EVs increased by over 4500 units as the company, led by Elon Musk, aims to script a recovery after two years of a slump.
Sales of EVs made in China saw a 3.6% year-on-year growth in August, which has now improved further to 5% for September.
Deliveries of Model 3 and Model Y vehicles manufactured in Shanghai went up to 95,366 last month from 90812 in September 2025.
The latest figures come as Tesla seeks to return to full-year sales growth after a difficult two-year period owing to increased competition.
Tesla’s annual sales declined for the first time in more than a decade in 2024, and the company was unable to recover in 2025.
It also lost its position as the world’s largest electric vehicle maker by sales to China’s BYD, which has expanded rapidly, particularly in Europe.
This year has been relatively stronger for Tesla, with the latest China figures adding to signs of improvement in several markets.
Vehicles manufactured at Tesla’s Shanghai factory are sold in China and exported to markets including Europe, Asia-Pacific and Canada, making the facility an important part of the company’s international business.
European sales also improve
Tesla has also recorded stronger sales in several European countries.
Registrations more than doubled in Portugal in September compared with a year earlier.
Sales rose more than 60% in France, 38% in Sweden and 24.8% in Spain.
Denmark and Norway also recorded modest annual increases even as the EV market in these countries remains largely saturated.
The company delivered 486,532 vehicles in the third quarter, comfortably exceeding Wall Street estimates of about 461,000 deliveries.
However, total deliveries were still roughly 2.1% lower than in the same period a year earlier.
The figures leave investors weighing the company’s stronger-than-expected quarterly deliveries against the continued year-over-year decline in total vehicle volume.
Q3 earnings in focus
Tesla’s third-quarter earnings report, scheduled for October 21, will be the next major event for investors assessing the company’s recovery.
The stock remains almost 25% down from its peak of $498.82.
Wall Street expects Tesla to report approximately $27.91 billion in third-quarter revenue and earnings of $0.45 per share, according to Fiscal.ai.
Investors are also expected to focus on Tesla’s Full Self-Driving (FSD) technology, robotaxi plans, and Optimus humanoid robot project.
Goldman Sachs said Tuesday that these businesses could become more important to Tesla’s stock performance than near-term earnings, highlighting the attention investors are paying to the company’s longer-term ambitions beyond vehicle sales.
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